Question

At the end of the current period, Oxford Ltd. has a defined benefit obligation of \(195,000 and pension plan assets with a fair value of \)110,000. The amount of the vested benefits for the plan is \(105,000. What amount related to its pension plan will be reported on the company’s statement of financial position? (a) \)5,000. (c) \(85,000. (b) \)90,000. (d) $20,000.

Short answer

Statement of financial position, also known as the organization's balance sheet, is the statement that investors use to optimize the firm's growth in the market.

Step-by-step solution

Correct answer

Option (c) $85,000 is the correct answer.

Calculations

Particulars	Amount
Defined benefit obligation	$195,000
Less: Fair value of plan assets	$110,000
Pension plan	$85,000